The Federal Authorities, by means of the Nigerian Electrical energy Regulatory Fee (NERC), has authorised the disbursement of N28 billion to electrical energy distribution firms (DisCos) for the procurement and set up of pay as you go meters below the Meter Acquisition Fund (MAF) Tranche B scheme.
The transfer is geared toward enhancing Nigeria’s poor metering density, which has lengthy contributed to very large business losses, estimated billing controversies, and widening market shortfalls throughout the ability sector.
In accordance with Order No: NERC/2025/107 revealed on the fee’s web site, the MAF gives a monetary mechanism for accelerating meter rollout to unmetered clients for free of charge, whereas guaranteeing a reputable income stream that helps long-term financing for DisCos.
DisCos to obtain N28 billion allocation
NERC directed all DisCos to utilise the N28 billion fund to offer meters for Band A and Band B clients inside their networks. The allocation shall be distributed in line with every firm’s market assortment share as of July 2025.
The regulator additionally gave DisCos 10 days from the efficient date of the Order (October 6, 2025) to conduct clear procurement processes and choose Meter Asset Suppliers (MAPs) with verified ready-for-deployment meter inventory. Chosen MAPs have to be submitted to NERC inside 15 days for “No-Objection” approval.
To assist native manufacturing, the fee mandated a minimal 30% native content material threshold for all collaborating MAPs, backed by agreements with home producers or assemblers.
DisCos face penalties for delays
Underneath the brand new framework, 60% of contract funds shall be launched to the MAP after verified meter supply, whereas the remaining 40% shall be paid upon affirmation of full set up.
NERC warned that any DisCo liable for delays on account of poor community clearance or inaccurate customer data will face penalties equal to the price of uninstalled meters.
All installations below Tranche B are to be accomplished by December 31, 2025, in line with the order.
Metering hole and want for the fund
Nigeria’s metering hole stays above seven million clients, one of many greatest in Africa, resulting in vitality theft, poor income assortment, and widespread billing disputes. This has left the market wanting liquidity and elevated the debt burden alongside the electrical energy worth chain.
The newly authorised Meter Acquisition Fund will not be the primary try to handle this drawback. The Meter Asset Supplier (MAP) programme launched in 2018 below former President Muhammadu Buhari sought to extend entry to pay as you go meters by means of shopper financing. It was later adopted by the Nationwide Mass Metering Programme (NMMP), a Central Bank of Nigeria–backed intervention launched below former CBN Governor Godwin Emefiele.
Whereas each programmes recorded some progress, implementation challenges and weak financing constructions left thousands and thousands of shoppers nonetheless unmetered. The brand new MAF construction seeks to handle this by leveraging market-based funding mechanisms backed by DisCos’ income collections, as an alternative of relying solely on authorities or CBN financing.
Why it issues
The success of the MAF might enhance money stream for DisCos, scale back the sector’s liquidity hole, and rebuild shopper confidence within the billing system. Nevertheless, like earlier initiatives, its effectiveness will depend upon clear disbursement, regulatory enforcement, and the power of DisCos to fulfill the set up deadline.
What you must know
In accordance with NERC, DisCos put in a complete of 225,631 meters within the second quarter of 2025, marking a 20.55% enhance in comparison with the 187,161 meters put in within the first quarter of the yr.
The regulator mentioned 147,823 items (65.52%) had been deployed below the Meter Asset Supplier (MAP) framework, 65,315 meters below the Meter Acquisition Fund (MAF) scheme, 12,259 meters by means of the Vendor Financed framework, and 234 meters had been put in below the DisCo Financed scheme.
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